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Keep it moving

Attention to detail will help your shipments move swiftly and securely across the U.S borders with Canada and Mexico.

By Toby Gooley, Managing Editor -- Logistics Management, 6/1/2005

For a few weeks after the terrorist attacks of Sept. 11, 2001, the roadways and bridges leading to the U.S. borders with Canada and Mexico looked like parking lots. That backlog eventually cleared as customs agents stopped inspecting each vehicle and focused on high-risk shipments.

Since then, border-crossing procedures that were fairly simple have gotten more complex, and those that already were rigorous have become more so. Add in growing trade volumes and customs organizations that are taxed to their limits, and you have a recipe for serious delays.

But international traders haven't yet felt the full impact of security restrictions at U.S. land borders. When we asked LM readers if their cross-border shipments in North America had been negatively affected due to increased security, only 54 percent of the 124 respondents said yes. The rest reported no significant change.

Of those who reported problems, 72 percent said it takes longer to cross the border, 54 percent reported suffering costly delays in delivering goods to customers, 41 percent said they must provide more customs documentation, and 34 percent said they're undergoing more customs inspections than in the past. Despite experiencing delays and other problems, though, the majority of respondents—62 percent—said they haven't changed their internal operations or scheduling as a result. Those that have made changes most often cited earlier preparation of shipments and documents, lengthier lead times, and security improvements to comply with the Customs-Trade Partnership Against Terrorism (C-TPAT).

What follows is a look at how those issues are playing out at both borders, along with advice from shippers, customs brokers, and carriers on how to ensure that cargo moves as efficiently as possible throughout North America.

Crossing into Canada

Since 9/11, U.S. Customs and Border Protection (CBP) and Canada Border Services Agency (CBSA) have worked closely together. The agencies have adopted similar structures and risk-assessment programs. Under the Smart Border Declaration signed in 2001, they set 32 security-related areas for collaboration, including harmonization of commercial processing, joint customs facilities, joint targeting of high-risk in-transit containers, infrastructure improvements, and preclearance of cargo.

Has all that led to many improvements? Based on conversations with importers, carriers, and customs brokers, the answer appears to be, "Not yet." One respondent to our survey said it still routinely takes trucks four to six hours to cross the border. Another cited backups in Ontario as a regular problem. And they're not imagining things: According to a report issued by the

Ontario Chamber of Commerce, the border crossings of Detroit-Windsor, Buffalo-Niagara, and Sarnia-Port Huron account for 60 percent of all land-borne trade between the United States and Canada. The report estimates that border delays cost both countries more than $10 billion annually in diesel fuel, labor, cargo inspections, and administrative activities as well as lost sales and jobs due to late deliveries.

One survey respondent who imports from Canada, knows the cost of border delays very well. "This increases overtime costs for unloading at our facility and causes a lot more communications with customers who call wanting to know where their load is and why it is late," said the logistics manager.

Some delays can be attributed to closer scrutiny of documentation. James Murray, corporate traffic supervisor for Respironics, a Murryville, Pa.-based manufacturer of medical devices, says formerly cursory reviews have become stricter. "In Canada they actually look at the documentation now," he says. "There's much more of a paper drill."

The level of detail required has greatly increased, confirms Robert Armstrong, vice president of government affairs for PBB Global Logistics in Fort Erie, Ont. In the past, a bill of lading that described a shipment as "auto parts" was acceptable. Now, customs authorities require very specific descriptions for each item, he says. Continued...

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